SOLE PROPRIETORSHIP OR ONE MAN BUSINESS:

The sole proprietor owns/manages and controls his business independently. He also makes provision for capital and decides on what type of business to undertake. He is the sole decision taker of his business and above all, he bears all the risk involved in the course of running the business alone.

Advantages of Sole Proprietorship

1. He takes quick decision since he has no need to consult any other person.
2. He has personal relationship with his customers and employees. 
3. Bureaucratic process is reduced.
4. Requires small capital to be established.
5. Personal supervision ensures an effective operation at all time. 
6. He enjoys privacy in his business.
7. He equally enjoys tax advantage. He does not pay company tax rather what he pays is  limited to his personal income tax.

Disadvantages of Sole Proprietorship

1. He bears the risk involved in the business single-handedly.
2. Expansion is not easily achieved due to the limited capital.
3. Advantages of limited liability is not obtainable.
4. The death of the sole proprietor marks the end of the business. 
5. Absence of specialization.
6. Advantage of large-scale production is ruled out.